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Gross Margin % is calculated as gross profit divided by its revenue. Resolute Forest Products's Gross Profit for the three months ended in Sep. 2022 was $321 Mil. Resolute Forest Products's Revenue for the three months ended in Sep. 2022 was $974 Mil. Therefore, Resolute Forest Products's Gross Margin % for the quarter that ended in Sep. 2022 was 32.96%.
The historical rank and industry rank for Resolute Forest Products's Gross Margin % or its related term are showing as below:
During the past 13 years, the highest Gross Margin % of Resolute Forest Products was 38.37%. The lowest was 22.47%. And the median was 24.36%.
Resolute Forest Products had a gross margin of 32.96% for the quarter that ended in Sep. 2022 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Resolute Forest Products was 7.10% per year.
The historical data trend for Resolute Forest Products's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Resolute Forest Products Annual Data | |||||||||||||||||||||
Trend | Dec12 | Dec13 | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | |||||||||||
Gross Margin % | Get a 7-Day Free Trial | 26.33 | 32.14 | 24.80 | 28.21 | 38.37 |
Resolute Forest Products Quarterly Data | ||||||||||||||||||||
Dec17 | Mar18 | Jun18 | Sep18 | Dec18 | Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | |
Gross Margin % | Get a 7-Day Free Trial | 32.19 | 26.14 | 42.12 | 38.85 | 32.96 |
For the Paper & Paper Products subindustry, Resolute Forest Products's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
For the Forest Products industry and Basic Materials sector, Resolute Forest Products's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Resolute Forest Products's Gross Margin % falls into.
Gross Margin is the percentage of Gross Profit out of sales or Revenue.
Resolute Forest Products's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as
Gross Margin % (A: Dec. 2021 ) | = | Gross Profit (A: Dec. 2021 ) | / | Revenue (A: Dec. 2021 ) |
= | 1406 | / | 3664 | |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | (3664 - 2258) | / | 3664 | |
= | 38.37 % |
Resolute Forest Products's Gross Margin for the quarter that ended in Sep. 2022 is calculated as
Gross Margin % (Q: Sep. 2022 ) | = | Gross Profit (Q: Sep. 2022 ) | / | Revenue (Q: Sep. 2022 ) |
= | 321 | / | 974 | |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | (974 - 653) | / | 974 | |
= | 32.96 % |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Resolute Forest Products (NYSE:RFP) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Resolute Forest Products had a gross margin of 32.96% for the quarter that ended in Sep. 2022 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Thank you for viewing the detailed overview of Resolute Forest Products's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Patrice Minguez | officer: President, Tissue Group | C/O RESOLUTE FOREST PRODUCTS INC., 111 DUKE STREET, MONTREAL A8 H3C 2M1 |
Hugues Simon | officer: President, Wood products | 111 ROBERT-BOURASSA, SUITE 5000, MONTREAL A8 H3C 2M1 |
Sylvain A. Girard | officer: Chief Financial Officer | 111 ROBERT-BOURASSA, SUITE 5000, MONTREAL A8 H3C 2M1 |
Duncan Davies | director | 111 ROBERT-BOURASSA, SUITE 5000, MONTREAL A8 H3C 2M1 |
Stephanie Leclaire | officer: Chief Legal Officer | 111 ROBERT-BOURASSA, SUITE 5000, MONTREAL A8 H3C 2M1 |
Daniel Viboux | officer: Chief Accounting Officer | 111 ROBERT-BOURASSA, SUITE 5000, MONTREAL A8 H3C 2M1 |
Suzanne Blanchet | director | 111 ROBERT-BOURASSA BOULEVARD, SUITE 5000, MONTREAL A8 H3C 2M1 |
Michael S Rousseau | director | C/O ABITIBIBOWATER INC., 1155 METCALFE STREET, SUITE 800, MONTREAL, QUEBEC Z4 H3B 5H2 |
Alain Rheaume | director | C/O ABITIBIBOWATER INC., 1155 METCALFE STREET, SUITE 800, MONTREAL, QUEBEC Z4 H3B 5H2 |
Lori Kilgour | officer: SVP, Chief Information Officer | 111 ROBERT-BOURASSA, SUITE 5000, MONTREAL A8 H3C2M1 |
Daniel Ouellet | officer: SVP Human Resources | 111 ROBERT-BOURASSA BOULEVARD, SUITE 5000, MONTREAL A8 H3C 2M1 |
Richard Joseph Tremblay | officer: SVP, Pulp and Paper Operations | C/O RESOLUTE FOREST PRODUCTS INC., 111 DUKE STREET, SUITE 5000, MONTREAL A8 H3C 2M1 |
John Lafave | officer: Senior Vice President | C/O ABITIBIBOWATER INC., 1155 METCALFE STREET, SUITE 800, MONTREAL A8 H3B 5H2 |
Randall C Benson | director | RESOLUTE FOREST PRODUCTS INC., 111 DUKE STREET, SUITE 5000, MONTREAL A8 H3C 2M1 |
Bradley Martin | director | C/O ODYSSEY RE HOLDINGS CORP., 300 FIRST STAMFORD PLACE, STAMFORD CT 06902 |
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